Green securitisation can help unlock finance in debt capital markets for smaller scale low carbon and climate-resilient assets. The public sector has a key role to play to scale up securitisation markets for green assets.

Covered bonds are an ideal tool to finance low carbon infrastructure, having been used in other public priority areas. Identifying existing green cover pools and developing frameworks for other low carbon assets will help scale up investment.

There is a clear potential for exchanges to create dedicated green bond segments, develop indices and support market education to facilitate investor decisions towards climate-aligned investments and enhance the market’s liquidity.